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Courier companies expand services:
Big players trend toward integrated logistics
Years ago, a courier company was just that—a firm specializing in expedited shipment of smaller packages and documents. It was typically a higher-priced option for overnight deliveries, or for packages that required the additional assurance of delivery provided by couriers.
Fast forward to 2006, and couriers have taken on just about every aspect of the supply chain. From domestic and international shipping, to third-party logistics to white glove value-added services, the courier companies are quickly positioning themselves as a one-stop option.
UPS Supply Chain Solutions, for instance, opened a new 800,000 square-foot logistics campus in Burlington, Ont. earlier this month. The $80-million facility is billed as the second largest UPS logistics hub in North America.
It will provide order fulfillment operations, critical parts deployment, freight receiving and shipment preparation. It's fully equipped with sophisticated warehouse management, shipping and international technology platforms, according to UPS.
"For manufacturers, the supply chain represents the second most important area of business where costs can be controlled," said Brad Mitchell, president of UPS Supply Chain Solutions in Canada. "In today's highly-competitive environment, manufacturers are reducing costs by maximizing efficiencies in sourcing, transportation and order fulfillment."
The new campus is comprised of two buildings, which currently house the headquarters of the courier's supply chain solutions business. A 600,000 square-foot distribution centre—the equivalent of six football fields—is geared toward the logistics needs of consumer goods and high-tech businesses. The second building is a specialized 207,000 square-foot healthcare centre focused on pharmaceutical products and medical devices.
The facility has 150 loading docks and super-flat finished floors for precision order picking at heights up to 30 feet. Radio frequency is deployed through wireless handheld devices.
Not to be outdone, Purolator Courier Ltd. announced plans of its own in July. The courier will be opening a new hub in St-Laurent, Que., and it will apparently be the most efficient and technologically advanced Purolator facility in Canada, the company reports.
The 160,000 square-foot facility will feature the latest package sortation and scanning technologies, and will service the Quebec market. It will consolidate the offerings of two facilities—one in Dorval, and the other in St-Laurent.
The Quebec division of Purolator will have more shipment capacity, and the facility will also enable the courier to provide more customized solutions and services to shippers, the company reports. In 2005, Purolator announced it would be broadening its service offering, further evidence of the migration of courier companies into the traditional supply chain management space.
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